Schloss v. Estey

72 N.W. 264, 114 Mich. 429, 1897 Mich. LEXIS 1119
CourtMichigan Supreme Court
DecidedSeptember 23, 1897
StatusPublished
Cited by3 cases

This text of 72 N.W. 264 (Schloss v. Estey) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schloss v. Estey, 72 N.W. 264, 114 Mich. 429, 1897 Mich. LEXIS 1119 (Mich. 1897).

Opinion

Long, C. J.

In 1893 the plaintiffs were manufacturers and wholesale dealers of clothing at Detroit. Defendant Bryson at that time was engaged as a retail dealer in clothing and also a manufacturer of comforters at Ovid. In the fore part of May of that year, Mr. Pilmore, the agent of plaintiffs, sold to Bryson a quantity of goods, consisting of clothing, to the amount of $863.35. The goods were shipped the last of August, and received by him. On the 13th of September plaintiffs commenced this action of replevin to recover possession of the goods, and took upon the writ all but about $30 worth. The grounds upon which they claimed the right to recover were that Bryson had not acquired title to the goods, as he had made false and fraudulent representations to the plaintiffs’ agent as to his financial standing at and prior to the time he ordered them, which representations had been relied upon in making the sale; and also that Bryson was financially insolvent at the time of the sale, and did [432]*432not intend to pay for the goods at the time he ordered and received them. Plaintiffs introduced testimony tending to show that Pilmore had been acquainted with and had sold goods to Bryson for about five or six years before the sale in question, and that Bryson, before this sale was made, represented to Pilmore that he owned a certain brick store in the village of Ovid, known as the “ Lambie, Clark & Hulse Store,” of the value of $3,000 to $4,000, and also that he owned the residence property where he lived, valued at $5,000. Testimony was also introduced tending to show that Bryson had made like representations to the agent of another wholesale firm, and by such representations secured about $1,000 worth of goods. It was also claimed upon the trial that Bryson had purchased from various other wholesale dealers a large quantity of goods, to the amount of about $12,000, which he received during the 60 days immediately before his failure, so that he had at the time of his failure (September 9, 1893) from $17,000 to $23,000 worth of goods in his possession in the village of Ovid.

Plaintiffs also claimed that, previous to the shipment of their goods and the failure of Bryson, he held out. through his own representations and those of co-defendant High, an attorney at Ovid, that he was solvent, and able to pay five dollars for every one he owed. The only evidence in the record as to representations made by defendant High is contained in two or three letters, the first one written August 24th, to the Chicago Kid Glove Manufacturing Company, in response to its inquiry, and states: “He carries a stock of dry goods and gents’ furnishings. The estimated value of the stock is $12,000, and is free from all incumbrance. * * * I, personally, do not know how much he is owing. I do not think that debts press him in the least.” The next letter written by High was in answer to one from the Merchants’ & Manufacturers’ Exchange at Detroit, dated September 8, 1893, in which that exchange asked that it be given in confidence such information “as you can” in regard to the responsibility, [433]*433general standing, past history, etc., of Bryson. To this High answered: “Stock of about $15,000, clear, but I think he is in debt somewhat; has good, fair business; refuses to make statement.” September 11th following, High wrote the exchange that Bryson had given him as trustee a mortgage for $5,437.95; that the mortgage covered the entire stock and business in trade to secure $1,000 to High individually, $1,000 to the First National Bank of Ovid, $2,000 to the Oakland County Savings Bank, and the balance to S. Simon & Company, of Detroit. High added to this letter, “This morning Mr. Bryson gave a bill of sale to D. M. Estey, of Owosso; consideration, $9,100.” It appears that Mr. Estey, who is the father-in-law of Bryson, on August 28th, in response to an inquiry in regard to Bryson from the Bradstreet Company, wrote that company: “I simply helped Mr. Bryson pay some of his obligations. I am not backing him in any other way. I helped him to pay some of his bills last fall, and some since the financial stringency; but from this on I expect him to be able to take care of himself.”

It is claimed by the plaintiffs that after Bryson received this large quantity of goods from different wholesale dealers, and before his failure, he removed the tickets from the goods, and had some tickets of his own printed and put upon the goods, and that this was done for the purpose of destroying their identity; that 'these tickets were put by Bryson upon all of the goods, except those which were kept on the second floor of the store. It appears that upon Monday morning, September 11th, a bill of sale was made by Bryson to defendant Estey, the consideration being stated in it as $9,100. The chattel mortgage to High had been placed on file in the township clerk’s office on the Saturday night previous. Mr. Estey claims to have gone into immediate possession of the property'under his bill of sale, with an agreement with Bryson to pay the chattel mortgage given to High. It was claimed further on the trial, by the plaintiffs, that [434]*434the chattel mortgage given to High was largely in excess of what was actually due to him, aside from that securing other creditors; that the bill of sale to Mr. Estey was also given for a larger amount than that due him, and that the stock of goods which it covered, at that time, was of the value of some $17,000; and that the bill of sale and the chattel mortgage were given for the purpose of assisting Bryson to cover up his property, with intent to cheat and defraud the unsecured creditors. Some testimony was also given by the plaintiffs tending to show that Bryson, Estey, and High made an effort to compromise and settle some of the claims, which the plaintiffs now contend was further evidence of fraud upon their part as against the general creditors. It was also claimed by the plaintiffs that all three of the defendants were in possession of the property at the time the plaintiffs claimed the goods in controversy. It was further insisted that, even though they were not in possession of the goods jointly, yet there was a conspiracy among the three to assist Bryson to cheat and defraud his creditors.

On the other hand, it was contended by the defendants that the evidence is undisputed^ that Bryson did own the house referred to by Mr. Pilmore in his testimony, and that the testimony in reference to the ownership of the store was contradicted by several witnesses, so that it became a question for the jury to determine whether any' false representations were made by Mr. Bryson.' Defendants further claimed on the trial that the total amount of goods received by Mr. Bryson during the 60 days before his failure did not exceed $7,000, and that at that time Bryson was indebted for goods in the amount of about $3,000. It was explained by the defendants on the trial that the reason of putting the new numbers on the goods was that Bryson’s store at Laingsburg had been broken into by burglars, and the lot numbers pulled off of some of the goods; that these goods were afterwards removed to Ovid, and new numbers put on them. Bryson testified that he was not insolvent when he bought and received [435]*435the goods; that he intended to pay for them, and that, if he had been left alone, he could have carried his business through; that there was a panic in August of that year; sales were not as good as expected; that he countermanded orders for goods that were about to be shipped to him to the amount of about $3,000; and that $610 worth ■of these goods were ordered from the plaintiffs in this case, and the order for the same countermanded.

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Bluebook (online)
72 N.W. 264, 114 Mich. 429, 1897 Mich. LEXIS 1119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schloss-v-estey-mich-1897.